Good Health Can’t Wait.
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<strong>Good</strong> <strong>Health</strong> <strong>Can’t</strong> <strong>Wait</strong>.<br />
Dr. Reddy’s Laboratories Limited<br />
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS<br />
(All amounts in Indian Rupees millions, except share data and where otherwise stated)<br />
2.35: EMPLOYEE BENEFIT PLANS (CONTINUED)<br />
Asset information<br />
CATEGORY OF ASSETS<br />
AS AT<br />
31 MARCH 2015<br />
AS AT<br />
31 MARCH 2014<br />
Corporate bonds 51% 51%<br />
Equity shares of listed companies 49% 49%<br />
Total 100% 100%<br />
Summary of actuarial assumptions<br />
PARTICULARS<br />
AS AT<br />
31 MARCH 2015<br />
AS AT<br />
31 MARCH 2014<br />
Discount rate 7.50% p.a. 8.00% p.a.<br />
Expected rate of return on plan assets 8.00% p.a. 8.00% p.a.<br />
Salary escalation rate 4.50% p.a. 4.50% p.a.<br />
Discount rate: The discount rate is based on the market yields prevailing in Mexico as at the balance sheet date for the estimated term of the obligations.<br />
Expected rate of return on plan assets: This is based on our expectation of the average long term rate of return expected on investments of the fund<br />
during the estimated term of the obligations.<br />
Salary escalation rate: The estimate of future salary increases considered takes into account the inflation, seniority, promotion and other relevant factors.<br />
Amounts recognized in current year and previous four years<br />
PARTICULARS<br />
AS AT / FOR THE YEAR ENDED 31 MARCH<br />
2015 2014 2013 2012 2011<br />
Defined benefit obligation 252 253 301 272 319<br />
Plan assets 68 110 125 186 247<br />
Surplus / (deficit) (184) (143) (176) (86) (72)<br />
Experience Adjustment on Plan Liabilities 25 (28) 29 (33) 16<br />
Experience Adjustment on Plan Assets (2) (5) - (9) (23)<br />
2.35.3 Other Benefits<br />
Provident fund benefits<br />
In India, certain categories of employees of the Company receive benefits from a provident fund, a defined contribution plan. Both the employee and<br />
employer each make monthly contributions to a government administered fund equal to 12% of the covered employee’s qualifying salary. The Company<br />
has no further obligations under the plan beyond its monthly contributions. The Company contributed ` 492 and ` 411 to the provident fund plan during<br />
the year ended 31 March 2015 and 2014, respectively.<br />
Superannuation benefits<br />
In India, certain categories of employees of the Company participate in superannuation, a defined contribution plan administered by the Life Insurance<br />
Corporation of India. The Company makes annual contributions based on a specified percentage of each covered employee’s salary. The Company has<br />
no further obligations under the plan beyond its annual contributions. The Company contributed ` 68 and ` 63 to the superannuation plan during the year<br />
ended 31 March 2015 and 2014, respectively.<br />
Other contribution plans<br />
In the United States, the Company sponsors a defined contribution 401(k) retirement savings plan for all eligible employees who meet minimum age and<br />
service requirements. The Company contributed ` 195 and `162 to the 401(k) retirement savings plan during the years ended 31 March 2015 and 2014,<br />
respectively. The Company has no further obligations under the plan beyond its annual matching contributions.<br />
In the United Kingdom, certain social security benefits (such as pension, unemployment and disability) are funded by employers and employees through<br />
mandatory National Insurance contributions. The contribution amounts are determined based upon the employee’s salary. The Company has no further<br />
obligations under the plan beyond its monthly contributions. The Company contributed ` 151 and ` 151 to the National Insurance during the years ended<br />
31 March 2015 and 2014, respectively.<br />
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